Loans are a type of financial aid that must be repaid. Loan funds are intended to assist a student in educational expenses only. Students and families should consider their future loan debt and ability to repay before committing to borrow.
Federal Student Loans
- Federal Perkins Loans: Program expires on September 30, 2017 unless Congress reauthorizes the program. If available the loan would be included as part of a need-based financial aid package. Payments on principal and interest are deferred until after the student has completed his or her degree or ceases to be enrolled at least half-time. The interest rate during repayment is 5%.
- Federal Direct Subsidized Loans may be included as part of a need-based financial aid package. Payments on principal and interest are deferred as long as the student is enrolled at least half-time. The interest rate is 4.45% for 2017-18.
- Federal Direct Unsubsidized Loans are awarded to students not eligible for the subsidized loan. Interest accrues to the student while in school but may be deferred and capitalized prior to entering repayment. The interest rate is fixed at 4.45% for 2017-18.
The U.S. Department of Education requires all first-time federal direct loan borrowers to complete an Entrance Loan Counseling session prior to receiving their loan proceeds.
Parent Loans — Federal and Private
Loans are available to parents of dependent students to help cover the difference between the cost of attendance and any financial aid awarded to the student. Parents have the option of the Federal Parent Loan for Undergraduate Students (PLUS) and loans offered by private lenders. For a comparison on these options click here.
- Federal Direct PLUS Loan (for detailed information, visit https://studentaid.ed.gov/sa/types/loans/plus)
Private Educational Loans
Various private lenders offer educational loans. These include loans to students (with and without co-signers), as well as to parents. Interest rates, deferment options and annual/aggregate maximum loan amounts vary by lender. To compare loan options through various lenders Ripon College students have utilized in the past, click here. For more information about these resources, contact the Office of Financial Aid.